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An Inventor Has Developed a New Spray Coating That Is

question 24

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An inventor has developed a new spray coating that is designed to improve the wear of bicycle tires. To test the new coating, the inventor randomly selects one of the two tires on each of 50 bicycles to be coated with the new spray. The bicycle is then driven for 100 miles and the amount of the depth of the tread left on the two bicycle tires is measured (in millimeters) . It is desired to determine whether the new spray coating improves the wear of the bicycle tires. The data and summary information is shown below:  Bicycle  Coated Tire (C)  Non-Coated Tire (N) 11.4520.78521.6340.844501.2110.954 Coated  Non-Coated  Difference  Mean 1.380.850.53 Std. Dev. 0.120.110.06 Sample Size 505050\begin{array}{l}\begin{array} { c | c | c } \text { Bicycle } & \text { Coated Tire } ( \mathrm { C } ) & \text { Non-Coated Tire } ( \mathrm { N } ) \\\hline 1 & 1.452 & 0.785 \\2 & 1.634 & 0.844 \\\downarrow & \downarrow & \downarrow \\50 & 1.211 & 0.954\end{array}\\\\\begin{array} { l l c c } & \text { Coated } & \text { Non-Coated } & \text { Difference } \\\text { Mean } & 1.38 & 0.85 & 0.53 \\\text { Std. Dev. } & 0.12 & 0.11 & 0.06 \\\text { Sample Size } & 50 & 50 & 50\end{array}\end{array}

Use the summary data to calculate the test statistic to determine if the new spray coating improves the mean wear of the bicycle tires.


Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Market Price

The ongoing market value at which one can buy or sell an asset or service.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest payments based on current earnings.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific point in time, detailing assets, liabilities, and shareholders' equity.

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